Sebi fines Rs 6 lakh on Taneja Aerospace, 2 others for disclosure lapses
The two officials are Salil Taneja and B R Taneja who were the company's chairman and non-executive director.
New Delhi: Markets regulator Sebi on Thursday imposed a total fine of Rs 6 lakh on Taneja Aerospace and Aviation Ltd (TAAL) and two senior company officials for disclosure lapses regarding acquisition of a wholly-owned subsidiary.
The two officials are Salil Taneja and B R Taneja who were the company's chairman and non-executive director, respectively, at the time of violation, Sebi said.
Sebi initiated investigation after it received complaint alleging irregularities in the amalgamation of TAAL with its wholly owned subsidiary TAAL Technologies Pvt Ltd (TTPL).
During the investigation, the regulator observed that with respect to investment in TTPL, Taneja Aerospace only disclosed on July 30, 2009 that TTPL has become its wholly owned subsidiary even when it had acquired 50 per cent shares on two occasions, March 19 and July 15, 2009.
Besides, it also did not disclosed about its advancement of Rs 9.7 crore in installments to TTPL.
"The allegation that TAAL and its board of directors had failed to disclose material transactions to BSE and shareholders...stands established," Securities and Exchange Board of India (Sebi) said.
By not making disclosures, the entities violated listing norms and Securities Contract Regulation Act (SCRA), the regulator noted.
Accordingly, a fine of Rs 5 lakh was imposed on Taneja Aerospace and Rs 1 lakh on Salil Taneja and B R Taneja to be paid jointly and severally.